Bulletin: TX000072

Dear Associates:

Reduction in the Basic Rate:  The Texas Insurance Commissioner has reduced Texas title insurance premium rates by 6-½ % effective July 1, 2004.  For example, the minimum basic premium rate (for a $10,000 policy) is now $237.  The basic premium for a $100,000 policy is now $871.  This rate change applies to all policies with a policy date of July 1, 2004 or later. Additionally, please note that the premium for the T-36 Environmental Protection Lien has been reduced from $50 to $25.

New rate cards are available now.  Please contact either your district manager or our forms department in Houston to order forms. To review the Texas Title Insurance Premium Rate Chart, please visit regionbunderwriting.com.

For details on the forms for which rates have now been established, please see our prior bulletin TX000064 New Rates and Rate Rules; Commissioner's Order for 2000 Hearing.

Other rates in effect:

1.  Rate Rule R-15 is amended as follows:

R-15. Owner Policy Endorsement.

A premium of $50.00 shall be charged for the issuance of each endorsement provided for in Procedural Rule P-9.a.(3) or Procedural Rule P-9.a.(4).

Note: This creates the Premium for the T-31.1 Manufactured Housing Endorsement

2.  Rate Rule R-27: Texas Residential Limited Coverage Junior Mortgagee Policy

a. When a Texas Residential Limited Coverage Junior Mortgagee Policy (Form T-44) is issued pursuant to P-46, the premium shall be as follows:

(i) For policy amount of $10,000.00 or less, the premium shall be $150.00;

(ii) For policy amount more than $10,000.00, but not more than $50,000.00, the premium shall be $175.00; and

(iii) For policy amount more than $50,000.00, but not more than $100,000.00, the premium shall be $200.00.

b. When a Texas Residential Limited Coverage Junior Mortgagee Policy (Form T-44) has been issued and the Texas Residential Limited Coverage Junior Mortgagee Policy Additional Coverage Endorsement is issued in accordance with Rule P-46.B, the premium for such endorsement shall be $25.00.

c. When a Texas Residential Limited Coverage Junior Mortgagee Policy (Form T-44) has been issued and a Texas Residential Limited Coverage Junior Mortgagee Policy Down Date Endorsement (Form T-45) is issued in accordance with Rule P-46.C, the premium for such endorsement shall be $50.00.

d. When a Texas Residential Limited Coverage Junior Mortgagee Policy (Form T-44) has been issued and a Texas Residential Limited Coverage Junior Mortgagee Policy Home Equity Line of Credit/Variable Rate Endorsement (Form T-46) is issued in accordance with Rule P-46.D, the premium for such endorsement shall be $25.00.

3.  R-30 PREMIUM FOR ACCESS ENDORSEMENT (T-23).

When the Access Endorsement (T-23) is issued with a Mortgagee Policy of Title Insurance (T-2) or Owner Policy (T-1) in accordance with Rule P-54, the premium for the Access Endorsement (T-23) shall be $100 for each policy.

4.  T-19.1 Endorsement R-29 has been amended to provide the rate for the Restrictions, Encroachments, Minerals Endorsement:

C. When the Restrictions, Encroachments, Minerals Endorsement - Owner Policy (T-19.1) is issued with an Owner Policy of Title Insurance (T-1) on land which is not residential real property, in accordance with Rule P-50, the premium for the Restrictions, Encroachments, Minerals Endorsement - Owner Policy (T-19.1) shall be 15% of the Basic Rate for a single issue policy provided that the minimum premium shall be not less than $25.00. A Company may not issue its Restrictions, Encroachments, Minerals Endorsement - Owner Policy (T-19.1) on residential real property.

5. R-31 PREMIUM FOR NON-IMPUTATION ENDORSEMENT (T-24).

When the Non-imputation Endorsement (T-24) is issued with an Owner Policy (T-1) in accordance with Rule P-55, the premium for the Non-imputation Endorsement (T-24) shall be 5% of the Basic Rate for each policy provided that the minimum premium shall be not less than $25.00.

6.  R-32 PREMIUM FOR CONTIGUITY ENDORSEMENT (T-25).

When the Contiguity Endorsement (T-25) is issued with a Mortgagee Policy (T-2) or an Owner Policy (T-1) in accordance with Rule P-56, the premium for the Contiguity Endorsement (T-25) shall be $100 for each policy.

7.  R-33 PREMIUM FOR ADDITIONAL INSURED ENDORSEMENT (T-26).

When the Additional Insured Endorsement (T-26) is issued with an Owner Policy in accordance with Rule P-57, the premium for the Additional Insured Endorsement (T-26) shall be 10% of the Basic Rate for each policy provided that the minimum premium shall be not less than $25.00.

8.  T-36, Environmental Lien Endorsement rate reduced.

 Rate Rule R-11, subsection g has been amended:

g. Endorsement issued as provided in  Rule P-9(b)(3) :A premium of $25.00 shall be charged for the issuance of each (T-36 Environmental Lien )Endorsement provided for in Rule P-9b(9). Note: this premium is reduced from $25.00.

9. Simultaneous Issued OTP and MTP after Construction  Rate Rule R-5 is amended by adding a new subsection C as follows:

C. An insured under an existing Owner Policy not issued containing P-8 exceptions may, after completion of improvements on the property insured, turn in the existing Owner Policy and receive credit for the premium previously paid when purchasing a new Owner Policy in an amount greater than the existing Owner Policy. A Mortgagee Policy may be simultaneously issued for the premium established in R-5.A. In no event may the Owner Policy be issued for less than the minimum promulgated basic premium rate. This subsection applies only if (1) the land is residential property, (2) the existing Owner Policy covered the identical land to be covered by the new Owner Policy to be issued, (3) the new Owner Policy is to be issued within four (4) years after the date of the existing Owner Policy, and (4) there has been no change in ownership of such land.

Note:  The rule now allows a person who had previously bought an owner policy of title insurance who has purchased a binder for construction to turn in the owner policy and receive full credit for the premium paid for that original owner policy and also only pay the simultaneous issue rate for a mortgagee policy issued with the new owner policy.  It applies only to residential property for 4 years and the owner in the original owner policy is the same as the owner in the new policy.

10.  MTP Reissue Credit when there are multiple new loans  R-8 has been amended to change one sentence:   On Mortgagee Policies, issued on multiple loans to fully take up, renew, extend or satisfy an old mortgage insured by a single Mortgagee Policy, the new policies being in the amount of the new mortgages, the premium for the larger Mortgagee Title Policy shall be at the Basic Rate, but a credit shall be allowed upon the premium as set forth previously in this rule. The premium for the remaining new Mortgagee Title Policy(ies) shall be at the Basic Rate. A credit shall still be allowed upon the premium as set forth in this rule even if not all of the new loans are insured or if only one of the new loans is insured. The reduction in rate as herein prescribed shall not apply to any case where any additional property not covered by the original policy(ies) is included in the policy to be issued.

Note:  The prior rule only allowed a credit when all of the "new "loans was being insured and that credit was only on the larger of the loans.  This change allows the credit whether or not all of the new loans are insured.